The World Bank Report No: ISR15809 Implementation Status & Results Russian Federation Public Finance Management Technical Assistance Project (P122998) Public Disclosure Copy Operation Name: Public Finance Management Technical Assistance Project Project Stage: Implementation Seq.No: 2 Status: ARCHIVED Archive Date: 31-Aug-2014 (P122998) Country: Russian Federation Approval FY: 2014 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Ministry of Finance Key Dates Board Approval Date 13-Sep-2013 Original Closing Date 31-Dec-2017 Planned Mid Term Review Date 21-Sep-2015 Last Archived ISR Date 25-Feb-2014 Effectiveness Date 19-Mar-2014 Revised Closing Date 31-Dec-2017 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) To improve transparency and results focus in public financial management and build institutional foundations for improved budget efficiency, effectiveness and accountability. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Improving the Economic Efficiency of Tax Policy and Administration 39.74 Improving Efficiency of Inter-Governmental Fiscal Relations and Sub-National Public Finance 24.84 Management Support for Development of the E-Budget System 39.15 Enhancing Budget Efficiency 24.84 Public Disclosure Copy Project Management 5.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview Page 1 of 5 The World Bank Report No: ISR15809 The project became effective on March 19th, 2014 and the first implementation support visit took place between April 15th and April 18th 2014. Good progress has been made in setting up the management arrangements to support project implementation and these are supported by Ministerial Orders issued in October 2012. Project Working Group meetings, chaired by the Deputy Minister, were held on March 14, 2013, May 24, 2013, August 6, 2013 and December 27, 2013. Sub-groups have been established to coordinate each component. The Agency Agreement with the project implementation unit (Foundation for Enterprise Restructuring) was signed in February 2014, and key staff are in place, including Public Disclosure Copy procurement and financial management experts. The policy and program basis for the project has been strengthened through the confirmation of the Government strategy On Enhancing Effectiveness of Public Financial Management till 2018 and the state program Management of public finances and financial markets. Additional programs, for management of state programs and for improving inter- budgetary relations, have been prepared based on the project, and are expected to be approved by June 2014. The team noted good progress in the early stages of procurement under all components, including the publication of Requests for Expression of Interest. The Ministry is currently preparing more than 50 packages, with the intention of starting the tendering processes for these in July 2014 and having contracts in place by the end of December. An initial disbursement of $300,000 has been made for the costs of the PIU, representing 0.6% of the total loan amount. No further disbursements are expected in the financial year ended June 2014. The first project interim financial reports will be prepared staring with the second quarter 2014 and submitted to the Bank by August 15, 2014. Locations Country First Administrative Division Location Planned Actual Russian Fed. Moscow Moskva ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Maximum time spent on tax calculation and Hours Value 290.00 290.00 160.00 payment by SMEs (within Doing Business Date 03-Jun-2013 31-Dec-2017 rating) Comments Number of regions with PFM quality Number Value 71.00 71.00 76.00 satisfactory to MOF Date 03-Jun-2013 31-Dec-2017 Comments Open budget index (calculated by International Number Value 74.00 74.00 80.00 Public Disclosure Copy budget partnership) Date 03-Jun-2013 31-Dec-2017 Comments Coverage of the federal budget appropriations Percentage Value 1.30 90.00 with performance indicators depicting goals Date 03-Jun-2013 31-Dec-2017 and results of budget implementation Comments Intermediate Results Indicators Page 2 of 5 The World Bank Report No: ISR15809 Indicator Name Core Unit of Measure Baseline Current End Target Reformed tax regime for oil and gas sector Text Value Fiscal reforms set out in National roll-out of new tax Instruction #700-p of May 3, regime Public Disclosure Copy 2012 and Instruction #433-p of April 12, 2012 Date 12-Oct-2012 19-Dec-2013 31-Dec-2017 Comments Ratio of tax appeals settled via pre-court Percentage Value 2.10 2.10 4.50 mechanism (by higher tax office) to tax appeals Date 31-Jan-2013 19-Dec-2013 31-Dec-2017 produced by the courts Comments The number of subjects of the RF in which the Number Value 7.00 7.00 5.00 estimated share of intergovernmental transfers Date 03-Jun-2013 19-Dec-2013 31-Dec-2017 from the federal budget exceeds 60 percent Comments Share of RF regions, which transformed their Percentage Value 40.00 40.00 64.00 regional budgets towards program budgeting Date 31-Jan-2013 19-Dec-2013 31-Dec-2017 Comments Access of public sector bodies at the regional Percentage Value 0.00 0.00 15.00 and local level of the RF to E-Budget system Date 31-Jan-2013 19-Dec-2013 31-Dec-2017 Comments 15 % of regions and 5 % of municipalities User satisfaction with the E-Budget system Percentage Value 0.00 0.00 60.00 Date 31-Jan-2013 19-Dec-2013 31-Dec-2017 Comments Monthly publication of comprehensive federal Text Value Federal budget execution Monthly publication of budget execution reports based on the data reports are not publicly comprehensive federal extracted from FTAS databases available on a monthly basis budget execution reports Date 12-Dec-2012 19-Dec-2013 31-Dec-2017 Comments Public Disclosure Copy Implementation of the Government budget Text Value The Program is drafted, but The Program is approved by reform Program till 2018 not approved the Government and implemented Date 12-Oct-2012 19-Dec-2013 31-Dec-2017 Comments Internal audit is introduced at the federal level Text Value Internal audit function is not First internal audit reports in Russia implemented issued for 70% of federal ministries and agencies The new approaches to the Page 3 of 5 The World Bank Report No: ISR15809 internal budget control were reflected in the Government Draft Law on Amendments to the Budget Code in the Area Public Disclosure Copy of State Financial Control Date 12-Oct-2012 19-Dec-2013 31-Dec-2017 Comments Federal standards for accounting and financial Text Value 5 federal accounting 60% of planned (20) federal reporting in the public sector, based on IPSAS, standards drafted but not accounting standards have are developed and implemented implemented. New law on been implemented across all accounting wil be effective entities to which they apply. from January 2013, requiring use of uniform federal accounting standards. Date 12-Oct-2012 19-Dec-2013 31-Dec-2017 Comments Budget efficiency and stability enhancement Text Value Budget allocations are not 3 year budget is approved on linked with strategic policy the basis of state programs objectives and measurable 95%of State programs are results. approved by the Government Date 12-Oct-2012 30-Dec-2017 Comments Data on Financial Performance (as of 07-Apr-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P122998 IBRD-82880 Effective 13-Sep-2013 06-Dec-2013 19-Mar-2014 31-Dec-2017 31-Dec-2017 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Public Disclosure Copy P122998 IBRD-82880 Effective USD 50.00 50.00 0.00 0.30 49.70 1.00 Disbursement Graph Page 4 of 5 The World Bank Report No: ISR15809 Public Disclosure Copy Key Decisions Regarding Implementation Since the project design was finalized in June 2013, Government needs and priorities have evolved, in response to new policy directions and the evolving economic situation, especially in the areas of tax policy and administration. The activities financed by the project will be adjusted accordingly and the Government will submit a revised project procurement plan. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5